Systems on Silicon Manufacturing Co (SSMC), a joint-venture between Holland's NXP Semiconductors and Taiwan Semiconductor Manufacturing Co (TSMC), said on Tuesday the centre will focus on developing specialised production processes.

It would not say how many new engineers it will employ for the centre. The move builds on efforts by Singapore to move the manufacturing sector towards higher value-added activities.

'SSMC's project adds value to our industry development and creates meaningful jobs,' said Mr Lim Swee Nian, the electronics executive director of the Economic Development Board.

NXP's Singapore chief executive (CEO), Mr Carlo van den Akker, said the expansion underscores Singapore's attractiveness for world-class talent and its location amid rapidly growing Asian markets.

SSMC chief executive C.V. Jagadish said the new centre will help it reduce time-to-market and costs associated with bringing new processes into mass production.

The centre, which will be established within SSMC's existing facilities in Pasir Ris, will focus on the e-government, automotive, near-field communication and radio frequency markets.

SSMC started operations here in 2000 runs a US$1.44 billion manufacturing plant that produces US$500 million worth of chips annually.

NXP, the former semiconductor arm of Dutch electronics giant Philips, holds a 61.2 per cent stake; TSMC owns the remainder.